Student Union Leadership Summit: SPONSORSHIP

1. Student Union Leadership Summit: SPONSORSHIP Saturday, October 13, 2012 Presented by: Rita Egizii, C.Mgr, BComm

2. Sponsorship as Strategy Strategic Planning = A process for conducting the activities of your organization for the purpose of renewal, growth & transformation Starts with “where do we want to go” and then works backward so you get there.

3. Three Pillars of Success Marketing Plan Funding Plan Communicates messages What, when, how of raising $ Strategic Plan Sets the direction of the Club

4. Fundraising Best Practices

5. Is a respect for the philanthropic process, an awareness of the fundraising process, regulations, requirements and an appreciation throughout the organization of the importance of collaborative efforts. Philanthropic Culture

6. Leadership & Public Trust • Ethical standards and principles are the foundation for maintaining public trust. • Asking for money from the community means you are accepting community dollars (private or corporate) for your use. • There is a fiduciary responsibility that comes with that.

7. Ethical standards and principles are the foundation for maintaining public trust Code of Ethical Principles and Standards Donor’s Bill of Rights Social Media guidelines Reporting & Accountability The AFP Code of Ethics www.afpnet.org

8. The process that raises philanthropic and sponsorship support for your club using donor-centric strategies aimed at long-term sustainability. Philanthropy & Sponsorship are NOT the same thing. “Fund Raising”: aka Fund Development

9. Donations • Philanthropic gift that comes with a charitable tax receipt. • No direct benefit is received in return. • University of Calgary charitable number. • Cannot be used without Development Office support. • Requires discussion with your Faculty’s Director of Development OR the University’s Central Development liaison.

10. What IS Sponsorship?

11. Club ‘Fundraising’ 99.9% SPONSORSHIPS NOT donations

12. Sponsorship is NOT just swag SWAG SWAG ON YOU (Nooo)

13. Sponsorship An investment, of cash and/or in kind, in return for access to exploitable business potential associated with an event or a highly publicized program.

14. What It Means Expectation of Return Money, goods, services Investment made must be leveraged to gain maximum advantage Draws foot traffic and/or media and public exposure Investment Cash and/or In-Kind Exploitable business potential Highly publicized program

15. Gift vs. Sponsorship Donation = a philanthropic GIFT Voluntary & altruistic Sponsorship = TRANSACTION You give something valuable (i.e. tangible) to them in exchange for their money or gifts in-kind.

16. It’s All About Marketing Sponsorship is a strategic marketing tool used by companies to promote their services in different markets with the ultimate goal of influencing customers.

17. Community Investment There is always a strategic objective behind sponsorship. There is a proven link between ‘corporate citizenship’ and marketing of products & services: • Consumers respondmore favorably to companies with strong citizenship values; • Strategic community investment increases brand differentiation and provides a competitive advantage in marketing services; • Community investment enhances a company’s ability to attract employees.

18. Why Sponsor? • Increase brand loyalty • Create awareness/visibility • Change/reinforce image • Drive retail traffic • Provide sampling of product(s) • Demonstrate ‘hospitality’ • Engage and involve employees in community efforts

19. What Sponsorship Is NOT • A gift • A tax-receipt able donation • An altruistic connection to a cause • A gift that is not connected to publicity or recognition • A gift that comes out of a company’s charitable donation budget ($ come out of their marketing/advertising budgets)

20. Getting Started

21. Where to start Step One: Develop a budget and determine: • If you even needSponsorship (!) • How much do you need? • How do you break it down into levels?

22. The Importance of Budgeting How much DO YOU NEED? • Revenues: • Ticket Sales • Other sources of Support • Sponsorships • Expenses: • Real costs • In-Kind Costs

23. Breaking It Down The Fundraising Pyramid

24. Should be definitive (and not within a range) Value of the Benefits Bronze: $ 5000 $ 8000 Silver: $10000 $15000 Gold: $25000 $35000 Platinum: $50000 $70000 Legacy: $250,000+ Benefits for levels should build on itself and can be customized for ‘in-between’ interests. Adding the actual value of a benefit package helps provide a visual ROI. Sponsorship Levels

25. Building the Pyramid Blackbaud Gift Range Calculator: https://www.blackbaud.com/company/resources/giftrange/giftcalc.aspx

26. Getting Started Step One: Develop a budget. Step Two: Think about the Opportunity you are offering.

27. How do you help THEM? Put yourself in the shoes of their VP Sales, or Manager Sales. What’s happening in their world? How does this company compare to its competitors? Who are their competitors and what are they doing in the area of community investment? Any upcoming anniversaries? Special announcements? What is their marketing/advertising budget? Where are they spending it? Is your opportunity better value? Will it make their job/life/stress easier?

28. What is your IMPACT?

29. Getting Started Step One: Develop a budget Step Two: Define the Opportunity you are offering. Step Three: Build your Inventory List – i.e. the Sponsor Benefit Table. What can your club offer that might be of value or interest to a Sponsor?

30. Why Sponsor? • Increase brand loyalty • Create awareness/visibility • Change/reinforce image • Drive retail traffic • Provide sampling of product(s) • Demonstrate ‘hospitality’ • Engage and involve employees in community efforts

31. Benefits for Sponsors • Logo recognition • Sponsor boards • Web-sites • T-shirts, business cards, etc. • Promotional material • Tickets to club events • Recognition from the podium • Distribution of materials • Opportunity to address audience

32. Be Fair : Sliding Scale

33. Put It All Together:The Partnership Proposal • The Problem • The Solution – YOUR club • Invitation to Participate • The Opportunity • Levels of Sponsorship • Benefits for Each Level • Impact Page LOTS of PHOTOS!!!

34. Who and How

35. Prospecting Questions to ask: Who would fit with your cause? (instead of who do you know that you could ask) Whatwould be the best thing to ask them for? Whywould they get involved? How would they want recognition?

36. Who do you look for? Companies who can benefit from the association. Companies who are interested in the target market you may represent. Companies looking to meet other sponsors. Companies who can add value to your club.

37. Who do you ask? NEW BLOOD – who is NOT on anyone else’s list?? Community Investment Staff. Marketing & Sales Manager.

38. Where do you find them? Identify companies not obviously involved in sponsorship. Classified Ads Financial News Trade Publications Who is hiring, growing, expanding? Who needs exposure?

39. How many do I need? • Guidelines for building a gift chart: • For each gift you need three or four qualified prospects • The lead gift is at least 15% and maybe up to 25% or more of the goal. • Build the chart downwards by cutting the gift size in half and doubling or tripling the number of donors at each level. • Round the donation levels up or down to avoid bizarre numbers. • Roughly 80% of your goal will come from 20% of your donors.

40. Prepare for Objections In-kind instead. Can we come back next year? What would it take? Acknowledge this and push back a little – can they expand their giving – as a way to reach a very distinctive audience? Do they know someone who might be interested? Thank them and move on. No money. Budget already spent. Over-commitment already. They give already. Wrong fit – your cause is of no interest or value to them.

41. Tips

42. Tips • Sponsorship package/pitch should meet their needs, not yours. • Provide measurablevalue for them – ROI, visibility, publicity, etc. • Sell sponsorship as a tool in their marketing kit – not as an altruistic action for your benefit. • Respect that it’s a contract – buy/sell agreement. They are buying exposure to your target audience. • Develop a consistent message, look and brand. • Present a full package that offers a ‘one-ask’ plan with multi-year commitment and then • Customize for each sponsor – sign off on an Agreement which includes the Sponsorship Benefits so each of you have written documentation of what was promised.

43. Focus on Win/Win Better way. What is our budget? What do we have to offer? Who is the best fit? How can we educate ourselves on who they are? How can we build a long-term relationship with this partner? How can we customize our proposal? What is the best chance of sponsor retention? We have been in contact with them all year and they are expecting our call. Common way. What do we need? What can we give them? Who has what we need? How can we educate them about who we are? How can I get the $ quickly? How did other people before me get the $? What do other groups do? I’ll just do my own thing. It’s that time of year again – I better make some calls.

44. Year-Round Relationship Building: Sponsor Appreciation Reception. Thank you letter. Thank you cards with photos – if possible – of their product/logo interacting with your people and the public. Send them info or your newsletter on a regular basis. Keep in touch with them throughout the year to let them know how you’re doing, what you’re doing, how their support has helped you get to where you are.

45. Easy Mistakes • It’s all about US – what we need; • Not respecting that it is a business transaction; • Making assumptions about what they need – making lists of ways that will recognize them even though it may not be what they specifically want. • Not presenting a united, cohesive, consistent brand. • Not presenting a UNIFIED PACKAGE – all projects listed and multi-year options. • Over-promising and under-delivering. • Never going back and telling them the impact their sponsorship had on 1) what we were trying to achieve AND 2) what they were trying to achieve.

46. Ladder of Effectiveness Hank Rosso

47. The Process – 13 Steps Identify the need and define the opportunity. Build the ‘inventory’ list of Sponsor Benefits. Make a list of who might be a good fit. Find out more about them – about what their business might be seeking in a partnership (internet is a great resource). Phone them – work by e-mail or personal visit. Prepare a customized proposal. Deliver it. Follow up and discuss it. Draft an agreement and sign it. Collect the good(s) and/or service(s). Keep them informed as the event un-folds. Involve them if you can. Steward the relationship immediately following the event. Get their feedback – do a survey. Work on a year-long contact and relationship-building.

48. Getting Help

49. The Development Office • Responsible for fundraising (through donations, sponsorships and gifts-in-kind) to support: • University of Calgary’s academic programs • Student scholarships • Faculty fellowships, professorships and Chairs • Contributions to research funding • Capital costs (facilities/equipment) • Student club fundraising activity falls under the guidance of the Development Office

50. Development Support: • Help clubs successfully fund their events • Adhere to CRA regulations • Adhere to U of C auditing reqt’s • Report back to donor on: • Promises made • Use of funds